The National Insurance Commission (NIC) has said plans are far advanced for the implementation of the new minimum capital requirement for insurance companies.
The move according to the NIC is aimed at growing the industry to create numerous opportunities in the country, especially in the oil and gas sector.
A similar exercise in the banking sector will most likely see the consolidation of banks in the country to meet the ¢400 million minimum capital requirement by end of year.
In the insurance industry however, the move will most likely ruffle a few feathers as some insurance industry players have silently opposed the decision by the commission.
Speaking on TV3’s business and economic analysis show, Business Focus, on Monday, November 5, Deputy Insurance Commissioner, Kofi Andoh told host, Paa Kwesi Asare, the commission will go ahead with the new directive regardless.
According to him, the whole idea is to ensure a stronger insurance industry that will enable companies undertake big ticket transactions.
He said they still have not arrived at a figure for the new minimum capital requirement but hinted “something around 50 million, 30 million and 70 million” came up during their consultations and stakeholder engagements.
“We are still consulting and talking with stakeholders to come up with something that is workable, we want to come up with guidelines that people can operate within and meet the deadline’’, he noted.
However, insurance analyst, Edgar Wiredu has criticized the move by the commission questioning the rationale behind the review in the capital requirement.